Deflation, disorder, development (and its demise), democracy (ditto) and dystopia.

Saturday, August 23, 2003

Here are a few recent tidbits of interest from the world of bankruptcy.

June's credit card delinquency rate, which reflects the percentage of credit card accounts with a monthly payment that is more than 30 days past due, rose to 5.12 percent from 4.93 percent a year ago, Moody's said. Moody's credit card delinquency index has risen from year-earlier levels in 10 of the last 11 months, it said. . . . For the second quarter, the charge-off rate was 6.97 percent, matching the record high set in the second quarter of 1997.

The total number of bankruptcies and the total number of non-business (personal) bankruptcy cases filed in the 12-month period ending June 30, 2003, once again broke records, according to data released today by the Administrative Office of the U.S. Courts. Filings increased 9.6 percent from 1,505,306 bankruptcy cases filed in the 12-month period ending June 30, 2002, to 1,650,279 filed in the same period ending on June 30, 2003, the largest number of cases ever filed in any 12-month period.

At its current growth rate, the total number of personal bankruptcies filed in the U.S. will eclipse 1 million petitions around mid-August, the earliest that milestone has been achieved in a calendar year.

Research by the Federal Reserve indicates that household debt is at a record high relative to disposable income. Some analysts are concerned that this unprecedented level of debt might pose a risk to the financial health of American households.